HUMAN RESOURCES MANAGEMENT outlines and presentation5.pdf

Kind of HR topics

1. HUMAN RESOURCES
MANAGEMENT
Hisham Sharawy

2. Course Agenda
Introduction about HR…………..…………L.1
HR strategic Concepts……………………… L.2
Job Analysis…………………………………… L.3
Recruitment…………………………………… L.4
Selecting and Testing……………………… .L.5
Interviewing…………………………… ..……L.6
Hiring and Orientation…………………… ..L.7
Training and
Development………………..............….L.8-9
3/9/2024 2Hisham Sharawy

3. Performance Appraisal …….........................L.10
Mid-Term exam…………………………………… .L.11
Performance Management….................…L. 12/13
KPI implementation………………… .…………L14-15
Career Management………………… .…………..L.16
Salaries structure………………………………… . L.17
Taxation and Social Insurance………………… .L.18
Benefits and compensation design………..…L.19
Managing Change………………………… ...…….L.20
Revision and Final Exam………………………… .L.21
Group Project discussion………………………… L.22
3/9/2024 3Hisham Sharawy

5. Salary vs
Wage
Thetermsalaryandwagesisoftenconfusedbypeople
andisusedinterchangeably.Butthetruthisthatboth
thesetermsdifferfromeachotherandholddifferent
meanings.
Salaryisafixedamountpaidortransferredtothe
employeesatregularintervalsfortheirperformance
andproductivity,attheendofthemonthwhereas
Wagesarehourlyordaily-basedpaymentgiventothe
labourfortheamountofworkfinishedinaday.

7. Introduction to Wages and
Compensation Regulations

8. What pay and
compensation
schemes?
Pay and compensation regulations:
All financial returns (e.g. wages, salaries,
incentives)
Non-financial returns (e.g. employee benefits,
moral benefits)
They get as part of their relationship with the
organization they work on.
Compensation: (it is financial or non-financial
return for the person vsjob, performance or for
anything related to the work of the organization).

9. Wages and compensation systems
Monetary Non-monetary
Provisional
incentives
Salary supplement
(permanent)
Annual
allowance
Vacancy
bonus
Benefits and
services
Mental returns
Basic
salary

10. Importance of
pay and
compensation
systems
For Organization
1.Wages and compensation systems are part of
the cost of producing goods and services
provided by the Organization.
2.Wages and compensation regulations affect
productivity.
3.It attracts skilled workers for high pay
4.Impact on a particular pay behavior.

11. Importance of
pay and
compensation
systems
For Employees:
Without wages, workers cannot live in dignity
and, as a matter of preference, pay is of great
importance to workers for the following reasons:
1.Wages help workers meet the cost of living.
2.Wages are for the effort and contribution of
workers.
3.Wages are right for employees.

12. Importance of
pay and
compensation
systems
Wages are particularly important for the
Organization's owners and capitalists, and there
are views on this as follows:
1.Wages are generated/ extracted fromprofit.
2.Wages are a burden on the profits.
3.Ownership can be built with pay.

13. Components of
pay and
compensation
systems
Salariesandpaysupplement:
Salaryandsalarysupplementationispermanent
whenitisaddedtothesalaryandbecomespartof
thepayandsalaryandconsistsof:
1.Annualincrement
2.Costoflivingallowance
Incentives:
Itispaidfordistinctperformance,whichistemporary
andvariableandnotpermanentandisdividedinto:
1.Individualincentives
2.Collectiveincentives
3.IncentivesattheOrganization-widelevel

14. Problems of pay
and
compensation
regulations
I: Problems with pay systems:
1.Salary is below the value of the job or above it.
2.Salary is not enough to cope with the burden of life.
3.Less pay than in the market.
4.Lack of clarity in post salary increments.
5.Salaries and wages are tied to the aims and strategies of
the Organization.
6.Employees on different payrolls amounts are assigned
the same job.
7.Promotion policies are unclear.
8.Managers' authority to grant increments and increases is
unclear.
9.The payroll's secret, which means the employees don't
know what's going on with their colleagues?

15. Problems with
wages and
compensation
systems
Third: Problems with benefits systems and
employee services:
1.It does not help to feel job security
2.Don't cover what the workers hope for.
3.It does not cover health services
4.The procedures for obtaining services and
benefits are not clear
5.Senior management is not satisfied with granting
benefits and services

16. Types of incentives

17. Types of
incentives
Ifthewageorsalaryistheconsiderationthatthe
individualreceivesasthevalueofthejobhe
occupies!Theincentiveisthereturnthathe
obtainsasaresultofexcellenceinperformance.
Asfortheadvantages,itisthereturnthatthe
individualobtainsasamemberofthe
organizationinwhichheworks,andasyousee
thateachofthesepartshasadifferentmeaning
andanimportantroleintheorganization.

18. Why are
the
incentives?
A good incentive system achieves beneficial results, the
most important of which are :
1.Raising the motivation and enthusiasm of workers to
perform the work .
2.Notice of justice workers .
3.The increase of work outputs in the form of production
quantities, production quality, sales, and profits .
4.Reducing work lossesSuch as reducing costs,
reducing quantities of raw materials, reducing waste in
human resources and any other resources .
5.Satisfying the workers' needs of all kinds, especially
appreciation, respect and a sense of status.

19. 6-Notifying employees of the spirit of justice within the
organization.
7-Attracting employees to the organization and raising
the spirit of loyalty and belonging .
8-Developing the spirit of cooperation among workers
and developing team spirit and solidarity .
9-Improving the project's image in front of the
community .
Why are the
incentives?

20. Different
types of
incentives
Incentivesattheindividuallevel.
Incentivesattheworkgrouplevel.
Incentivesacrosstheorganizationasawhole.
Incentivescanalsobedividedintothefollowing
base:
*Workersincentives
*Incentivesatthelevelofspecialistsandadmin-
staff
Bycombiningthesetwoclassifications,thefollowing
classificationcanbereached,whichweexplainin
detail:

21. Worker
incentives
Freelancer
incentives:
Itisconsideredone
of the most
importantwaysto
paybothwagesand
incentivestogether.
Inthismethod,the
incentivethatthe
workerreceivesis
determined
accordingtothe
quantity of
production,ortheno
ofpiecesproducedor
theeffortspent
Itsadvantages:
1.Easeofunderstandingand
absorption.
2.Adirecteffectontheenthusiasmof
individualstoincreaseproduction
becauseitdirectlyaffectsthe
incomeoftheindividual.
3.Theworkerexercisesakindofself-
censorshiponhimself.
4.Accuratelyaccordingtothecostof
wagesbecauseitislinkedtothe
numberofunits.
Itsdisadvantages:
1.Thetendencyofworkto
inaccuracyandlackofquality.
2.Newworkersfrustrated.

22. Worker
incentives
Timeincentives:
Inthismethod,theworkerhastoproduceatthe
specifiedtimeandisrewardedfortheamountof
savingsatthistime,orheisrewardedforusingthe
sametimeingreaterproduction.
Theincentivecandependontime,bycalculatingthe
typicalorstandardproductiontime.Thenthewageand
incentivearedeterminedbasedontheexistenceof
hourlywages,atanagreedrateasanincentive,and
standardproductionduringtheworkingday.

23. Incentives for
specialists and
administrators
commission: It’s a special payment against regular agreed
sales or agreement as a percentage of those.
bonus :
1.Efficiency Bonus: It is an increase in wage or salary based on
thespecial productivity of the individual in his work. It is
granted after a period and when the individual proves high
productivityand some times we call it “promotional pay”
2.Exceptional bonus: granted due to outstandingtask, duty,
performanceoreffort .
reward: It looks like Exceptional bonus but the difference
that it is not pre –promised before duty

24. Incentives
across the
organization as
a whole
Theyareincentiveplansbuilttomotivatetheemployees
oftheorganization,basedonperformanceandoverall
efficiency.Therearethreetypesofthem:
1.Participateinthe“GrandProfitSystem”ofthe
organization'sthatemployeesbenefitfromit.It
consistsofdeductingacertainpercentageofthe
company'sprofitsandthendistributingittothe
employees.
2.Employeeownershipofcompanyshares.
3.PeriodicalIncentive:It’spaidasamotivationfor
employeesduetobeinginadepartmentorin
organizationandit’snotfixedpaidbutperiodically

25. Moral
incentives
It is no less important than material incentives
and does not cost much, and it depends on the
saying of the Messenger, may God’s prayers and
peace be upon him (a good word is true), and it
is of three types :
1.Thanks and appreciation
2.Gifts
3.Celebration

26. Factors affecting wage and compensation
systems

27. Introduction
Wage and compensation systems do not come out of nowhere. There are many
factors that influence the shape and size of these systems. Some of these factors
are internal and some are internal.
What is meant by external factors:What is beyond the scope of the
organization's control, or is outside the geographical boundaries of the
organization, or is a societal factor.They include: (laws and legislation, the
impact of competition and competitors, supply and demand...)
The internal factors:It means the factors and forces that exist within the
organization, and in which the organization has a fundamental role in shaping it.

28. InternalImpacts
First:theobjectivesoftheorganization:
Theobjectivesoftheorganizationhaveadirectimpactontheformandsizeofthe
salariesandcompensationsthatitpays.Thesegoalsinclude:
1.Improvingperformance:astheorganizationseekstolinkwagestoproductivity
throughsystemsvariousincentives,andthisisdonethrough:
Incentivesaredesignedattheindividuallevelbyexaminingtheefficiencyof
individualperformance,suchasexaminingtheresultoftheannualperformance
appraisalofemployees.
Incentivesarelinkedtothecollectiveperformanceofemployeesatthelevelof
department,departmentorproductionline.
Possessionislinkedtodesiredperformancebehaviorsuchasdisciplineatwork.
2.Raise the added value

29. InternalImpacts
3. Enhancementthe organization's culture
4. Empowering employees
5. Attract the best skills
6. Develop loyalty and belonging
7. Encouraging teamwork
8. Achieving internal and external justice

30. External factors
First: Laws and legislation:
1.Minimum wage laws.
2.Pay non-discrimination laws.
3.Social insurance laws.
4.Laws of material compensation for work injuries.
5.Payroll tax laws.
6.Laws affecting employee services and benefits.
7.Taxation Law

31. Pay and compensation strategies
Refertotheappropriatemixofwagesandcompensationthatiscompatiblewith
theconditionsoftheorganization.Thewagesandcompensationsystemsconsistof
salaries,incentives,employeebenefitsandservices,andtheidealcombination
meanswhichofthesecomponentswillbeused?Andinwhatsize?
Theorganizationmustdeterminewhichofthethreecomponentswillbeused,isit
onlyone,twoorallofthem?Andifallareused,whataretheusagerates?For
example,itcanbesaidthat100%ofwhattheworkersgetwillbedistributedas
follows60%basicsalaryand30%incentivesand10%employeebenefitsand
services.Itisnotedthatifthesepercentagesarecompatiblewiththeorganization,
itmaynotbecompatiblewithotherorganizations,aseachorganizationhasitsown
circumstancesandstrategies.

32. Pay and compensation strategies
Levels
First:theoverallstrategy:
Itreferstothemainandgeneralmovesattheleveloftheorganizationoratthe
levelofitsseniormanagement,whicharethemovesthatguidetherestofthe
movesintheorganization.Amongthemostimportantmacrostrategies:
Differentiationstrategy(referstotheorganization'sprovisionofitsservices
andproductsinawaythatisdistinctfromtheproductsandservices)
Costreductionstrategy(heretheorganizationfocusesonproducingmoreata
lowercost)
Creativityandinnovationstrategy(Manycompaniesrelyontheirdistinctionto
bedeterminedbycreativityandinnovationintheideastheypresent.
Expansionstrategy(whentheorganization'sgoalistoentermanymarkets,
especiallyinothercountries)

33. Pay and compensation strategies
Second: Human Resources Strategy:
Staff recruitment and selection strategy.
performance appraisal strategy.
Training strategy.
The paternalistic strategy in human resources.

34. Pay and compensation strategies
Third: Wages and Compensation Strategy:
Types of wages and compensation:
Types of salaries.
Types of incentives.
Types of benefits and services.
Its size (estimated in money).
their ratio to each other.)%(

35. Pay and compensation strategies
Fourth :The wage and compensationstrategy’s implementation:
The wage and compensation strategy must take its time in implementation
before it is evaluated and reviewed. One of the most important methods of
evaluating the wages and compensation strategy is to measure its impact on:
•The behavior of workers, where we follow up here the impact of the wages
and compensation strategy on the behavior of workers, for example:
1.The performance of workers in quantity and quality
2.employee turnover rate
3.Improve employee satisfaction

36. Module (3)
Job evaluation and internal
fairness in salaries

37. Job
evaluation
Internal
justice in
salary
Definition of Job Evaluation:
The job evaluation process is defined as the
process by which the relative importance of
each of the establishment's jobs is determined
compared to other jobs in terms of
characteristics, duties, responsibilities, tasks,
working conditions, necessary qualifications
and results.
This process is used in many human resource
activities, the most important of which is
determining the fair wage for each job and
setting a structure for salaries and wages at the
enterprise level..

38. Design a job
evaluation
system
1.Introduction to system design ,lamrof(
ohw senimreted ohw ,liated ni dengised
)sboj setaulave
2.Choosing a job evaluation method
3.Develop features of the evaluation plan
4.Verb evaluationjfor jobs
5.Determine the number of degrees
6.Grade pricing
7.The system circuitainjustice

39. Methods of
job
evaluation
There are actually two groups of methods used in
job evaluation:
The first group: the sum of non-quantitative
descriptive methods, including:
1.arrangement method.
2.The double comparison method.
3.grading method.
The 2
nd
group: Total modern quantitative
methods, including:
1.points method.
2.Factor comparison method.

40. Methods of job
evaluation
1
st
method (non quantitative –Descriptive method)
-Which One of the simplest and oldest methods, and is
suitable for small companies that the number of jobs in
ita little.
-According to this method, jobs are arranged from
highest to lowest without regard to the individual
incumbent, and without regard to wage paid for their
work.
-The arrangement is made at the level of each
department of the company, and then at the level of
the company as a whole.
-Practically: We choose the job that comes on top in
terms of importance.
-Then: We choose the job that comes last in terms of
importance.
-Finally: We choose the job that comes in the middle in
terms of importance.

41. Methods of
job
evaluation
Example:
If in a company we have the following five
functions:
Sales supervisor, sales representative, account
clerk,Treasurer, secretary
The simple arrangement is as follows:
Sales Supervisor position at the top.
Secretary job in the back.
In Centre Accounts Clerks job.
So the final ranking is as follows:
Top job: Sales Supervisor
Sales Representative
Bookkeeper
treasurer
The lowest position is a secretary

42. Methods of
job
evaluation
2.Method of Double comparison:
Here,Thejobiscomparedwithallother
jobsintermsofeducation,experience,
responsibilityandresults.Fromthis
comparison,itisdeterminedwhichoneis
moreimportantbygivingitapoint,andin
theendwecollectthepointsobtainedfor
eachjob,andarrangethejobsaccordingto
thenumberofpointsfromtoptobottom..

43. Methods of
job
evaluation
3.Grading method:
Determinesthenumberofgradesor
categoriesforjobstobeinEnterprise:
Inthiscase,thefacilitymanagement
shoulddeterminethenumberofgradesor
categoriesintowhichjobsareclassified,
andthisnumbervariesfromonefacilityto
anotheraccordingtothedifferenttypes
andnumberofjobs,centralizationand
decentralization,scopeofsupervision,
promotionpolicy,etc.
3/9/2024 Hisham Sharawy 43

44. Methods of
job
evaluation
Modern methods group (quantity):
A-thepointmethod
Itisamethodcharacterizedbyitsrelative
accuracyandthevalidityofitsresults,anditis
basedoncomparingthejobstobeevaluatedin
thelightofcommonfactorsbetweenthesejobs,
sothatthejobgivesanumberofpointsin
relationtothecommonfactorsthatwerechosen
asthebasisforevaluation,andthemorepoints
thejobgets,themorepointsitindicatesits
importanceinrelationtootherjobs..

45. Methods of
job
evaluation
Steps to apply the point method:
Determine the jobs to be evaluated:
Some of the jobs are supervisory, and some are
clerical, technical, administrative, etc. It is possible
to assume, for the sake of simplicity, that the jobs
are:
supervisory positions.
technical jobs.
Administrative jobs.
clerical jobs.

46. Methods of
job
evaluation
Determine the common factors on the
basis of which the evaluation will be
conducted:
That is, identifying the factors that can be present
in all jobs, but to varying degrees. The most
common factors are:
1.skill.
2.the responsibility.
3.mental effort.
4.muscular effort.
5.working conditions.
6.Leadership.
7.Experience.
8.....etc.

47. Methods of job
evaluation
B-Factor comparison method:
withaslightdifferenceabouttheprevious,
whichisthatinsteadofdeterminingthe
relativeimportanceofthejobby
comparingittoaspecificscaleinwhichthe
evaluationfactorsandgradesofeach
factorareindicated(thepointmethod),it
determinestherelativeimportanceofthe
jobbydirectlycomparingittootherjobs
undereachoftheevaluationfactors.
Separately,andintheend,thesumofthe
valuesofthefactorsinthejobis
representedbytheirrelativepercentage.
Stepstoimplementthemethod.

48. Evaluation
factors
Selection of evaluation factors usually are
between five factors:
1.Mental requirements. (Creativity and
analysis)
2.Skill
3.Physical requirements
4.Supervisory and non-supervisory
responsibilities
5.working conditions
3/9/2024 Hisham Sharawy 48

49. Experience
the
responsibilit
y
mental
effort
muscular
effort
working
conditions
Function(1)1 3 5 4 4
Function(2)2 2 4 5 5
Function(3)3 1 2 1 3
Function(4)4 4 3 3 2
Function(5)5 5 1 2 1
And can Add other factors as necessary :
•Choosing a number of significant jobs: on the basis of which the work will be
compared when evaluating it, and it is required that these jobs represent the
largest possible number of the establishment’s jobs.
•Arranging the functioning jobs under each evaluation factor according to the
importance of the factor in the job.
Example

50. Module 5
Merit Matrix

51. Merit Matrix
Ameritmatrix,alsoknownasamerit
increasematrixorsalaryincreasematrix,
isamathematicalgridthatcompensation
professionalsprovidetohelpcompany
managersaccuratelyandefficiently
administersalaryincreasestoan
organization’semployees.

52. Before you
create your
salary increase
matrix
Considerthe following as you determine your budget:
What is the goal of your merit increase program?
Does your organization pay below market, at market or
above market?
If you are below market, do you want to make your
organization’s compensation program more competitive?
If you are at market, do you want to continue the status
quo?
If you are above market, are you trying to hold down
salary growth?
What is your organizational philosophy toward
excellent performers? What about your substandard
performers?

53. Before you
create your
salary
increase
matrix
Let’s have a look on the salary structure types. There
are three main types of salary structure businesses
use:
Traditional
Broadband
Market-based
Accordingtoonesurvey,themajorityof
businessesusemarket-basedstructures.And,the
leastcommonsalarystructureisbroadband.The
typeofstructureyouusemaydependonyour
industry,businesssize,businesslocation,and
employeeclassification(i.e.,exemptvs.
nonexempt).
Keepinmindthatyoucanchangethesalary
structureyouuse.Youdon’thavetostickwiththe
sametypeofstructure,especiallyasyourventure
grows.Understandthetypesofsalarystructure
tochoosetheonethatworksbestforyoursmall
business.

54. Traditional
structure
It’sdividedintonumerouspaygrades.Salaryincreases
arerelativelysmalljumpsbetweenpaygrades.
Employerscanusetraditionalstructurestoprevent
employeesfromcappingoutatthemaximumsalary
tooquickly.
Decidewhatanemployeeneedstodotomoveonto
thenextpaygrade.Youmayuseavarietyofmetrics
todetermineapayraise,suchasperformanceand
lengthofemployment.
Settheminimumandmaximumsalaryrangeforeach
employeeoremployeegroup.Then,determinethe
numberofpaygradeswithinthestructure.
Here’sanexampletraditionalstructureyoucancreate
foreachdepartmentorgroupofemployees:
Pay Grade 1Pay Grade 2Pay Grade 3Pay Grade 4Pay Grade 5
Salary$35k –$37k$37k –$39k$39k –$41k$41k –$43k$43k –$45k

55. Broadband
structure
Broadbandstructuresaremoreflexiblethantraditional
salarystructures.Thesesalarystructuresutilizefewerpay
grades.And,eachpaygradehasawidersalaryrangethan
traditionalstructures.
Ifyouusethebroadbandstructure,youhavemoreleeway
whendecidinganemployee’ssalary.Youaren’tlimitedby
anarrowsalaryrangelikeatraditionalstructure.
However,usingabroadbandsystemcanleadtogreater
payinequalitiesbetweenemployees.Considerconducting
apayaudittoidentifypaydisparitiesduetorace,gender,
disability,etc.
Anemployeemaymaxoutatthehighendoftheirsalary
rangeifyouimplementabroadbandsalarystructure.
Althoughthismightbegreatinthemoment,the
employeemaystartlookingatotherjobswhentheyno
longerreceiveraises.Pay Grade 1 Pay Grade 2 Pay Grade 3
Salary$45k – $55k $55k – $70k $70k – $92k

56. Market-based structure
It’s based on what other employers pay
employees. Under a market-based salary
structure, conduct an external pay audit to
determine your salary ranges for each
position.
Put a list of positions and their descriptions
before collecting market data. That way, you
can better compare positions.
In some ways, market-based structures are a
combination of traditional and broadband
salary structures. Thesalary rangescan be
high like broadband structures, but the ranges
are generally narrow and consistent and
maybe overlapping to provide agility of
performance assessment.
Pay Grade
1
Pay Grade
2
Pay Grade
3
Pay Grade
4
Pay Grade
5
Salary
$40k –
$47k
$45k –
$52k
$50k –
$57k
$55k –
$62k
$60k –
$67k

57. Merit Matrix
Approaches
There are Three common approaches when it
comes to designing a merit increase grid:
•Basic Broadband approach
•Standard merit matrix –based on performance
rating alone
•Two-variable merit matrix –based on performance
rating and an employee’s position within their pay
range

58. Broadband
approach
If you use a broadband pay structure, you would typically have
a percentage increase amount for each level of employee
performance regardless of where the employee salary is
relative to the midpoint. You would design a spreadsheet with
employee ratings on the left side and only one corresponding
increase amount for each rating. You would need to take some
initial steps before creating your spreadsheet:
1.Determine the average projected merit increase among
organizations for the coming year.
2.Review your previous year’s evaluations to determine a
rating distribution. Find the center of distribution (the rating
with the most employees). Assuming that this number
represents your average employees, this group will get the
median or average increase.
3.Determine the rest of the rating categories (for example,
you could use “outstanding,” “above average,” “below
average” and “unsatisfactory”).
4.Determine the percentage of total employees in each rating
category
5.Apply that percentage to your total merit increase budget to
arrive at the increase distribution for each group.

59. Broadband
approach
you may simply make an educated guess on
the performance distribution:
Performance increase pool amount (total
amount available for increases) = 3.5 percent
Ratings with corresponding increase
percentages:
Outstanding = 5.5 percent to 6 percent
Above average = 4.5 to 5 percent
Average = 3.5 to 4 percent
Below average = 2 percent
Unsatisfactory = 0

60. What Are
Merit Raises
Based On?
A merit increase –or merit raise –is commonly
received upon meeting criteria defined within
apay-for-performance plan. These criteria
help you determine how an employee’s
performance should be rated, and a merit
matrix calculates payouts based on those
evaluations.
Depending on your
organization’scompensation philosophy, you
may choose a standard merit matrix or a two-
variable merit matrix to determine how to
administer payouts.

61. Standard
Merit Matrix
Example:
Performance
In the first merit matrix example below, the
highest percentage increase an employee can
receive is 5% (far exceeds expectations), while
other employees receive 1% to 4%, depending
on their rating

62. Consideryourtotalpayrollbudgetis
$1,000,000,andyoudonotwanttoexceed
$33,000withinyourmeritincreasepool.That
givesyou3.3%toplaywith.Ifyoumultiply
“RaiseforPerformance”by“Percentof
Employees”youwillgetthetotalpercentof
budgetforthatperformancelevel.Inthis
example,acrossallfiveperformance
categories,thesumtotaltopayoutemployees
is3.07%oftotalpayroll(i.e.,$1,000,000x
3.07%=$30,700).Wearewithinbudget!
Standard
Merit Matrix
Example:
Performance

63. Standard Merit Matrix Example II: Performance with Higher Payouts
HRprofessionalsknowthatthemeritmatrixoffersflexibility.Salary
increasepercentagescanbeadjustedbyperformancecategoriesand
employeedistributionstomeetbudgetaryrestrictions.Ideally,your
organizationisabletograntasignificantlyhigherpayouttoitstop
performers.Underthisphilosophy,themeritmatrixwouldinvolve
steeperincreasesperperformancelevel,maxingoutcloserto10%.For
instance,individualswithan“EmployeePerformance”ratingof“5”
mightgetpaidoutat9%,whereasyour“4”employeesareat6%,“3”
employeesareat3%,“2”employeesareat1%,and“1”employeesare
at0.5%.Thismorestaggeredmeritincreasescalewillhelpyou
distributesalaryincreasestorewardstrongemployees,andsenda
strongmessagetolesserperformingemployees,inanimpactfulway.

64. In the example below, the sum total to payout
employees is 3.255% of total payroll (i.e.,
$1,000,000 x 3.255% = $32,550). We are still within
budget!
Standard Merit Matrix Example II: Performance with Higher Payouts

65. Two-Variable Merit
Matrix Example:
Performance &
Range Position
Using a more complex merit matrix, you can
take into account performance, as well as where
employees fall within their pay range. This can
be an effective compensation strategy to fully
optimize your merit matrix budget. This
approach ensures you are not perpetuating
salary range outliers, i.e., employees well above
or below the 50th percentile that could result in
an inequitable salary structure. This can be
problematic when increases are distributed
based on performance alone.

66. In this example, employees are divided into
four quartiles, from the bottom fourth of their
salary range (Q1) to the top fourth of their
salary range (Q4.). You can calculate where an
employee falls in their salary range by using
thecompa-ratio or range penetration
formulas.
compa-ratio: (base salary / midpoint of salary
range)
range penetration:
([base salary –range minimum] / [range
maximum –range minimum])
Two-Variable
Merit Matrix
Example:
Performance &
Range Position

67. Within the same performance category, employees in Q1 will
receive a higher payout than employees in Q4. This rewards
employees for their level of performance, while more rapidly
moving Q1 employees toward the middle of their pay range,
and slowing the speed Q4 employees’ move beyond their pay
range.
Two-Variable
Merit Matrix
Example:
Performance &
Range Position

68. Module (6)
Salary taxes and insurance

69. Income Tax
(EGYPT)
Oneofthemanysourcesofnationalincome,which
isimposedatdifferentratesonthegroupsofpeople
accordingtotheirannualincomelevel,andthistax
isimposedonindividualswhoworkingovernment
entitiesorcommercialprofessions,andcompanies
withcapitalthatachieveanannualreturn,andan
annualdeclarationissubmittedtothetaxauthority
toclarifythepaymentofalltaxliabilities;toprevent
legalaccountability.

70. 2022 Income
Tax Slides

71. نوناق30 ةنسل
2023 باسحل
بسك ةبيرض
تلايدعتب لمعلاه
 ةدام(٨ ):
 يتلآا وحنلا ىلع ةبيرضلا رعس نوكي:
٠.٠٠ نم ٪١ هينجىلإ21000 هينج––––
٢.٥ نم رثكأ ٪٢١.٠٠٠ ىلإ هينج٣٠.٠٠٠ نم هينج١ ىلإ هينج٣٠.٠٠٠ هينج
١٠ نم رثكأ ٪٣٠.٠٠٠ ىلإ هينج٤٥.٠٠٠ نم رثكأ هينج٣٠.٠٠٠ ىلإ هينج
٤٥.٠٠٠ نم هينج١ ىلإ هينج٤٥.٠٠٠ هينج––
١٥ نم رثكأ ٪٤٥.٠٠٠ ىلإ هينج٦٠.٠٠٠ نم رثكأ هينج٤٥.٠٠٠ ىلإ هينج
٦٠.٠٠٠ نم رثكأ هينج٤٥.٠٠٠ ىلإ هينج٦٠.٠٠٠ نم هينج١ ىلإ هينج٦٠.٠٠٠
٢٠ نم رثكأ ٪٦٠.٠٠٠ ىلإ هينج٢٠٠.٠٠٠ نم رثكأ هينج٦٠.٠٠٠ ىلإ هينج
٢٠٠.٠٠٠ نم رثكأ هينج٦٠.٠٠٠ ىلإ هينج٢٠٠.٠٠٠ نم رثكأ هينج٦٠.٠٠٠ هينج
ىلإ٢٠٠.٠٠٠ نم هينج١ ىلإ هينج٢٠٠.٠٠٠هينج
٢٢.٥ نم رثكأ ٪٢٠٠.٠٠٠ ىلإ هينج٤٠٠.٠٠٠ نم رثكأ هينج٢٠٠.٠٠٠ ىلإ هينج
٤٠٠.٠٠٠ نم رثكأ هينج٢٠٠.٠٠٠ ىلإ هينج٤٠٠.٠٠٠ نم رثكأ هينج٢٠٠.٠٠٠
ىلإ هينج٤٠٠.٠٠٠ نم رثكأ هينج٢٠٠.٠٠٠ ىلإ هينج٤٠٠.٠٠٠هينج
٢٥ ىلع داز ام ٪٤٠٠.٠٠٠ ىلع داز ام هينج٤٠٠.٠٠٠ ىلع داز ام هينج
٤٠٠.٠٠٠ ىلع داز ام هينج٤٠٠.٠٠٠ ىلع داز ام هينج٤٠٠.٠٠٠ نم هينج١
ىلإ هينج٢٠٠.٠٠٠هينج
٢٧.٥ ٪––––– ىلع داز ام١.٢٠٠.٠٠٠هينج
ةرشع برقلأ ةبيرضلا باسح دنع ىونسلا لخدلا يفاص عومجم بيرقت متيو
لقأ تاهينج.
 ةدام(١٣ / دنب١ ):
١- غلبم١٥.٠٠٠ لومملل اًيونس اًيصخش ًءافعإ هينج.
3/9/2024 Hisham Sharawy 71

72. How to
calculate
income tax
Anemployeeinthefivebracketreceives7,000poundspermonth,
equivalentto84,000poundsannually.Whencalculatingthetaxon
hisincomeinthiscase:
*Thepersonaltaxexemptionlimitisincreasedin2022from9,000
poundsto15,000pounds.
*Thepersonalexemptionlimitof15,000poundsisfirstdeducted
fromthetotalannualincome,
*Sothattheremainingamountbecomes69,000pounds.
*Then,thevalueofthefirsttrancheexemptedfromthetax,15
thousandpounds,wasdeducted,leaving54thousandpoundsleft
oftheamount,whichisthepartonwhichthetaxwillbe
calculated,sothatthedeductedamountbecomes5925pounds
annually,and493.75poundspermonth.

73. Social
Insurance
The insurance law specified a unified contribution rate to be paid by
the employee, whether in the government, public or private sector,
at 11% of the total subscription wage.
This means, for example, that if the wage that the employee will
insure is 1200 pounds, which is the minimum value of the current
insurance subscription wage per month, this means that the
employee will pay monthly insurances of 132 pounds.
The employer also pays a monthly subscription on behalf of the
employee, set by law at 17.25% of the subscription wage for
government workers, 18.25% for workers in the public sector, and
18.75% for workers in the private sector.
As of January 1, 2023, the minimum insurance subscription wage
will be raised to 1700 pounds instead of 1400 pounds, and the
maximum insurance subscription wage will be raised to 10900
pounds instead of 9400 poundsbased on the new Insurance and
Pensions Law promulgated by Law No. 148 of 2019. One of the
direct effects of the implementation of that decision is that the
minimum pension for the end-of-service person, as of January 2023,
will be 1105 pounds, while the maximum pension will be 8720
pounds

74. Social
Insurance
Social security contributions
Employee contributions
The employee contribution percentage is 11% of the
total social insurance salary.
The subscription wage has been determined with a
minimum of EGP 1,200 and maximum limit of
EGP8,100.Starting from 1 January 2022, the
subscription wage has been determined with a
minimum of EGP 1,400 and maximum limit of
EGP9,400.
The minimum and miximumlimits are increased by
15% on 1January of each year for a period of seven
years, starting from 1 January 2021.
These two limits are to be increased by the rate of
inflation as of 1January 2028, taking into account the
approximation of the minimum and maximum limits
to the nearest hundred pounds.

75. Year Minimum wage (EGP)
Maximum wage
(EGP)
2020 1,000 7,000
2021 1,200 8,100
2022 1,400 9,400
2023 1,700 10,900
2024 2,000 12,600
2025 2,300 14,500
2026 2,700 16,700
2027 3,200 19,300

76. Social
Insurance
Employer contributions
The employer contribution percentage is
18.75% of the total social insurance salary.
In addition to the above, any
managers/boardof directors whose names are
included in the commercial register of the
company will be socially insured as employers
andwould be subject to social insurance at a
flat rate of 21% of the total maximum wage
(i.e. EGP8,100).

77. Module (7)
Vacations and Leaves

78. 3/9/2024 Hisham Sharawy 78

79. 3/9/2024 Hisham Sharawy 79

80. 3/9/2024 Hisham Sharawy 80

81. 3/9/2024 Hisham Sharawy 81

82. ددـحيبحاصلمعلاديعاومةزاجلأاةيونسلابسح
تايضتقملمعلا،هفورظوولازوجياهعطقلاإبسلأبا
ةيوقاهيضتقتةحلصملمعلا.
مزتليولماعلامايقلابةزاجلأابىفخيراتلاودمللةىتلا
اهددحبحاصلمعلااذإوضفرلماعلاةباتكمايقلا
ةزاجلأابطقسهقحىفءاضتقااهلباقم.
ىفوعيمجلاوحلأابجينألصحيلماعلاىلعةزاجإ
ةيونساهتدمةسمخرشع،اموياهنمةتسمايأةلصتمعىل
لقلأامزتليوبحاصلمعلاةيوستبديصرتازاجلأاوأ
رجلأالباقملاهللكثلاثتاونساذإفتهتناةقلاعالمعل
لبقدافنتسالماعلاديصرهتزاجأةيونسلاقحتسارجلأا
لباقملااذهلديصرلا.
لاوزوجيةئزجتةزاجلإاوأاهمضوأاهليجأتةبسنلاب
لافطلأل.
3/9/2024 Hisham Sharawy 82

83. 3/9/2024 Hisham Sharawy 83
ىلعلماعلانأمدقتيبلطبلوصحلاىلعهتزاجإةيدايتعلاايف
،اهدعومامإفنأاهلبقيبحاصلمعلاوأمتياهليحرتماعلليلاتلافاذإ
تضقنا3تاونسناكىلعبحاصلمعلامازتلاةيوستبلباقملا
يدقنلاديصرلتازاجلأاهفرصولماعللاذإفتهتناةمدخلماعلانود
لوصحلاىلعديصرتازاجلإاةيدايتعلاافرصهللباقملايدقنلالكلذ
ديصرلانودبدحىصقأ.
اذإفناككانهريصقتنملماعلادصقبلوصحلاىلعلباقملاقنلايد
اذهلديصرلافرصيهللباقملايدقنلاديصرلتازاجلأادحبىصقأثلاث
روهش.
اذإفناكليحرتةزاجألماعلا
ً
اعجارفورظللمعلاملومزتليبحاص
لمعلاةيوستبلباقملايدقنلاديصرلتازاجلإالماعلللك3تاونس
اذإفتهتناةدمةمدخلماعلالافزوجيهنامرحنملوصحلاىلع
لباقملايدقنلاديصرلتازاجلأاامهمتناكهتدماذإفعنتمابحاص
لمعلاناككلذ ًلالاخإهنمهتامازتلابوهوامبتريلماعللقحلايف
ضيوعتلانعاذهديصرلا.

84. Module (7)
Salary and Wage payment Deduction

85. مصخلا دعاوق
بتار نم
لماعلا
فظوملاو
 ةدام43
- رجأ نم عطتقي نأ لمعلا بحاصل زوجي لا
نم رثكأ لماعلا (10 )% هضرقأ دق نوكي امل ءافو
ءانثأ لام نمنايرس دقعلاع ةدئاف ةيأ ىضاقتي نأ وأ ن
روجلأا ىلع مكحلا كلذ ىرسيو ، ضورقلا هذه
امدقم ةعوفدملا.

86. مصخلا دعاوق
بتار نم
لماعلا
فظوملاو
 ةدام44
- عم داوملا ماكحأ ةاعارم75 ,76 ,77 عاضوأ ضعب ميظنت نوناق نم
مقر نوناقلاب رداصلا ةيصخشللااوحلأا لئاسم يف يضاقتلا تاءارجإو1 ةنسل
2000 نع لوزنلا وأ زجحلا وأ عاطقتسلاا لاوحلأا عيمج يف زوجي لا ،
دودح يف لاإ نيد يأ ءادلأ لماعلل قحتسملارجلأا (25 )% ، رجلأا اذه نم
ىلإ مصخلا ةبسن عفر زوجيو50 % ةلاح يفنيدةقفنلا.
- دنعوسب لمعلا بحاصل ابولطم نوكي ام مث ، ةقفنلا نيد مدقي محازتلا ام بب
أ ، قح هجو ريغب هيلإ فرص امل ادادرتساوأ ، تامهم وأ تاودأ نم لماعلا هفلتأ و
تاءازج نم لماعلا ىلع عقو ام.
- طرتشيوأ ةداملا هذهب ةررقملا ةبسنلا دودح يف رجلأا نع لوزنلا ةحصل ن
لماعلا نم ةبوتكم ةقفاوم هب ردصت.
- بسحتوقتسا دعب ةداملا هذه نم ىلولأا ةرقفلا يف اهيلإ راشملا ةبسنلا عاط
يمأتلا نيناوقل اقفو ةقحتسملاغلابملا ةميقو ، رجلأا ىلع لخدلا ةبيرض يعامتجلاا ن
لع صوصنملا ةبسنلا دودح يف لماعلل هضرقأ دق لمعلا بحاص نوكي امو ، يفاهي
ةقباسلا ةداملا.

87. مصخلا دعاوق
بتار نم
لماعلا
فظوملاو
 ةدام61
- لانع لماعلا ىلع مصخلا ءازج عقوي نأ لمعلا بحاصل زوجي
نأ زوجيلاو ، مايأ ةسمخ رجأ ىلع ديزي امب ةدحاولا ةفلاخملا
أ نم رثكأ اهعقوي يتلا تاءازجلل ءافو لماعلا رجأ نم عطتقي رج
دحاولا رهشلا ىف مايأ ةسمخ.
- اذإو دوصقملا نأ ربتعا رجلأا نم ةددحم ةبسنب مصخلا ددح
لماعلل يمويلا يساسلأا رجلأا وه كلذب.

88. مصخلا دعاوق
بتار نم
لماعلا
فظوملاو
ةدام73
اذإببستلماعلاهئطخبةبسانمبوهلمعيفدقفوأفلاتإامهمتوأ
تلاآوأتاماخوأتاجتنماهكلميلمعلابحاصوأتناكيفهتدهعمزتلا
ءادأبةميقامدقفوأفلتأ.
بحاصلولمعلادعبءارجإقيقحتلاراطخإولماعلانأأدبيعاطتقابملا
غلبروكذملانمهرجأىلعلاأديزياماذهلعطتقيضرغلاىلعرجأمخ
ةسمايأيفرهشلادحاولا.
زوجيولماعللنأملظتينمريدقتبحاصلمعلامامأةنجللاشملاراإ
اهيليفةداملا (71)نماذهنوناقلا ددمللاقفوو
تاءارجلإاوةدراولااهب.
اذإفملضقيبحاصللمعلاغلبملابىذلاهردقفلاتلإلوأىضقهلب
لقأهنمبجوهيلعدرامعطتقانودهجو قح
للاخةعبسمايأنمخيراترودصرارقةنجللا.
لاوزوجيبحاصللمعلانأىفوتسيهتاقحتسمقيرطباطتقلااعقفو
مكحهذهةداملااذإغلباهعومجمرجأنيرهش.

89. صخلم
عاطقتسلاا
 لاوا : داوملا
ي

ف رج�اب دوصقملاةقباسلا
 لماعلل لماشلا
ي
لعفلا رجلاا وه ,ملا غلابملا ةفاك يأ ةقحتس
نوناق بجومب لماعلللمعلا
 ايناث : تاعاطقتسلاا هجوا (تلاو ةبي

ضلا مصخ دعب تانيمأ
ةيعامتجلاا
 · لمعلا بحاصل نيد ( ةفلس)
 · تادعم وا تلاا فلتلمعلا
 ·تاءازجلا
 · نيد
ي
جراخ
 ·ةقفنلا نيد

90. اثلاث : قرط
ةيولواو
تاعاطقتسلاا
1– نيد طو
ر
شلا ةقفنلا :دح
ي

ف لماعلا لع مصخلا زوجي دو
50 % ىرخلاا نويدلاو ةقفنلا نيد ةلاح
ي

ف رجلاا نم ( هفلس– فلاتا
تلاا– تاءازج– نيد
ي
جراخ ) مدقيو ةلاح
ي

ف لاوا ةقفنلا نيد
لمعلا بحاصل اقحتسم نوكي ام هيليو هدوجو ( هفلس–لاتا تلاا ف
– تاءازج–
ي
جراخ نيد
2– نيدل لمعلا بحاصل قحتسي ام ( هفلس ) طو
ر
شلا :ت لا ديز
نع همصخ متي ام ةبسن10 % رهشلا
ي

ف لماشلا لماعلا رجا نم
دحاولا
3– تادعم وا تلاا فلاتا لمعلا طو
ر
شلا :صخلا ةبسن ديزت لا م
نع5 دحاولا رهشلا
ي

ف لماشلا لماعلا رجا نم مايا , نا زوجي لاو
رجا نع همصخ متي ام
ي
لامجإ غلبم ديزينيرهش
4– طو
ر
شلا تاءازجلا : نع مصخلا ةبسن ديزت لا5 رجا نم مايا
رهشلا
ي

ف لماشلا لماعلادحاولا
5– نيد طو
ر
شلا
ي
جراخ :نم مصخلا ةبسن ديزت نا زوجي لا رجا
ىرخلاا نويدلا
ي

فاب لا ةفاضلإاب
ي
جراخ نيد ى� لماعلا (س هفل–
تلاا فلاتا– تاءازج–
ي
جراخ نيد ) دودح
ي

ف لاا25 %رجلاا نم